Morning Reads
- Reverse Brain Drain After Losing 140,000 From Workforce
- Bread Prices Skyrocket as Inflation Grips Europe
- UK Inflation Returns to 40-Year High
- Britain Scales Bac
- Biden to Sell More
- The Fed, Staring Down Two Big Choices
- Three Hidden Words
- Inflation Causes IRS to Raise Tax Brackets
- Weary of Snarls, Small Businesses Build Their Own Supply Chains
- US Housing Market in ‘Free Fall’
- Dubai’s Luxury Property Market
- Billionaire Ambani Splurges $163 Million on Priciest Dubai Villa
- Nestlé to Acquire Seattle’s Best Coffee Brand From Starbucks
- Netflix Returns to Growth, Saying the Worst of Slowdown Is Over
- The Great Netflix Debate: Do Its Movies Belong in Theaters?
- John Mack, Who Led Morgan Stanley Into a Crisis, Regrets Little
- Rarely-Humbled Goldman Sachs
- Deutsche Bank HQ Raided by German Prosecutors in Tax Probe
Option
Futures
PREMIUM
PREPPER
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S&P 500 futures are 0.7% below fair value; the Nasdaq 100 futures are 0.5% below fair value; and the DJIA futures are 0.5% below fair value
Key factors driving the futures market:A further rise in Treasury yields (2-yr at 4.51% and 10-yr at 4.10%) after Minneapolis Fed President Kashkari (FOMC voter) notes he could argue for fed funds rate to go above 4.75% if underlying or core inflation doesn't improve, according to Reuters
Better-than-expected earnings results from Netflix (NFLX), United Airlines (UAL), ASML Holding (ASML), Procter & Gamble (PG), and Travelers (TRV)
A bit of a breather after a strong two-day run for stocks
The Bank of England said it will proceed with sale of gilts, starting in November as planned, but will hold off selling longer-dated gilts in 2022, according to Bloomberg
President Biden announces release of 15 million barrels from Strategic Petroleum Reserve to be delivered in December
UK CPI +10.1% yr/yr in September (versus 9.9% in August), reaching a 40-yr high
Reuters poll shows strong expectation for ECB to raises rates by 75 basis points at Oct. 27 meeting
MBA Mortgage Applications Index -4.5% wk/wk, as mortgage demand drops to lowest level since 1997, according to CNBC
Brokerage research calls of note:Upgrades: EOG, XOM, CLR, LMT, NFLX, SITE
Downgrades: AAP, BXP, WOOF, BBY, BL, SAM, BAH, HUBB, IRDM, LOW, OLPX, PXD, PII
WTI crude futures +1.4% to $83.97/bbl; nat gas futures -0.6% to $5.71/mmbtu; copper futures -1.0% to $3.33/lb
2-yr note yield +7 bps to 4.51% and 10-yr note yield +10 bps to 4.10%
Today's economic data: September Housing Starts and Building Permits at 8:30 a.m. ET; Fed's Beige Book at 2:00 p.m. ET